Advocacy News – Jan. 9, 2025
What happened: The Michigan Chamber has joined a coalition lead by the U.S. Chamber of Commerce calling on federal lawmakers to delay implementation of a law that would mandate complex and burdensome reporting requirements by small business owners, with significant penalties for non-compliance.
Why it Matters: The Corporate Transparency Act mandates that companies disclose and regularly update detailed beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
- It subjects covered entities and their “beneficial owners” to vague and complex reporting requirements while putting their sensitive personal information at risk. Failure to comply can result in fines of over $590 per day, as well as felony charges and up to two years imprisonment.
What We Are Saying: The coalition letter calls for a one-year delay of the law’s 2024 year-end compliance deadline by supporting language included in the Further Continuing Appropriations and Disaster Relief Supplemental Appropriations Act of 2025.
- This would provide important relief to small business owners already facing economic challenges and allow for the myriad legal challenges to the law play out and be resolved.
FinCEN estimates that more than 32 million such entities will be affected by the new law just this year, with an additional six million each subsequent year as new businesses are formed.
The MI Chamber will continue to monitor this issue and call on federal lawmakers from Michigan to do work towards a reasonable solution to avoid unintended negative impacts to Michigan small business owners.
For more information, contact Mike Alaimo at malaimo@michamber.com